CIM Dividend Type Payments
Although CIM has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on CHIMERA INVESTMENT to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):
| CHIMERA INVESTMENT (CIM) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 17.05 | 17.30 | 17.15 | +0.15 | 1.1M | 5.6 | 3.2B |
CIM Dividend-Like Income Using Covered Calls
With CIM at 17.15, here's a table showing how big the annual "dividend" (ie. total annual call premium received) would need to be to attain 3%, 5%, and 10% annual yields. Also shown is the equivalent number of cents/day necessary to achieve each yield:
| Annual Yield | Annual Premium | Cents/Day |
|---|---|---|
| 3% | 0.51 | 0.1 |
| 5% | 0.86 | 0.2 |
| 10% | 1.72 | 0.5 |
So now we need to find out of the money covered calls that pay at least the prescribed cents/day amount of time premium. That will generate income and, because they are out of the money, leave room for some upside potential on the stock. Here are some examples:
| 3% Yield On CIM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Nov 16 | 18.00 | 0.05 | 33 | 0.2 | 0.70 (4.1%) | |
| Dec 21 | 18.00 | 0.15 | 68 | 0.2 | 0.70 (4.1%) | |
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| Top 10 Open Interest For Oct 19 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SPY dividend | 6. | MU dividend | 1. | CRON dividend | |
| 2. | SPX dividend | 7. | FXI dividend | 2. | UVXY dividend | |
| 3. | EEM dividend | 8. | BAC dividend | 3. | NIO dividend | |
| 4. | QQQ dividend | 9. | AMD dividend | 4. | NFLX dividend | |
| 5. | PBR dividend | 10. | XLF dividend | 5. | AMRN dividend | |
Want more examples? CIG Dividend | CINF Dividend
